In a recent development, the ongoing trial of FTX co-founder Sam Bankman-Fried has brought to light his contemplation of selling FTX equity to Saudi Crown Prince Mohammed bin Salman, a well-known investor in blockchain gaming. The revelation emerged during the cross-examination of Caroline Ellison, former CEO of Alameda Research, on Thursday. Bankman-Fried had previously expressed concerns regarding competition from Binance, capital generation, regulatory hurdles, and the acquisition of Snap Inc (NYSE: SNAP) stocks. He had also sought additional funding from BlockFi, a firm that had previously extended loans exceeding $660 million to Alameda.
Bankman-Fried pointed the finger at Ellison for Alameda’s financial troubles, citing inadequate hedging strategies. However, Ellison acknowledged that while better hedging could have improved Alameda’s financial position, the company had sizeable open-term loans and was heavily reliant on their FTX credit line. She revealed that she had prepared seven distinct balance sheets for Genesis pre-bankruptcy.
In other significant news, Binance and its CEO, Changpeng “CZ” Zhao, are currently grappling with legal challenges in Brazil following a comprehensive 500-page report from a financial pyramid scheme investigation. The report levels accusations of unauthorized securities trading, tax evasion, and potential links to organized crime and terrorism against Binance. These allegations have disrupted Binance’s operations within the country, although the company vehemently denies the charges.
On a separate note, JPMorgan’s Onyx Digital Assets introduced the Tokenized Collateral Network (TCN) based on blockchain technology in May 2022. Spearheaded by Tyrone Lobban, this application converts money market fund shares into digital tokens, streamlining collateral processes. TCN’s public debut took place through a collaboration with BlackRock (NYSE: BLK) for a derivatives transaction with Barclays bank.
